Direct costs are the one which can be linked to the cost driver.
Parking fee is not linked to miles travelled
Gasoline is linked to miles travelled as more miles travelled more gasoline will be consumed.
Insurance is linked to miles travelled more the miles travelled more is the risk.
Oil change is linked to miles travelled as it is recommended based on miles travelled
Tires are also changed as per miles travelled
License plate fee is not linked to miles travelled
Hence Gasoline, Insurance, oil change and tires are answers.
Question 8 (10 points) Using an automobile as a cost center and miles traveled as the...
Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 13,120 miles for business during 2018 and a total (including business miles) of 16,000 miles. His total expenses for his automobile for the year are: Gasoline $2,061 Oil changes 92 Insurance 1,030 Tires 225 Repairs 620 Total $4,028 The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to...
Marc Lusebrink, sole proprietor of Oak Company, bought a used automobile and drove it 13,120 miles for business during 2018 and a total (including business miles) of 16,000 miles. His total expenses for his automobile for the year are: Gasoline $2,061 Oil changes 92 Insurance 1,030 Tires 225 Repairs 620 Total $4,028 The automobile cost $20,000 on January 1, and depreciation expense for the year, including business use, was $4,000. His business parking and toll fees for business amount to...
Kristen Lu purchased a used automobile for $29,000 at the beginning of last year and incurred the following operating costs: Depreciation ($29,000 ÷ 5 years) $ 5,800 Insurance $ 3,000 Garage rent $ 1,600 Automobile tax and license $ 800 Variable operating cost $ 0.13 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $17,550 at the beginning of last year and incurred the following operating costs: Depreciation ($17,550 ÷ 5 years) $ 3,510 Insurance $ 1,900 Garage rent $ 1,000 Automobile tax and license $ 490 Variable operating cost $ 0.13 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $29,900 at the beginning of last year and incurred the following operating costs: Depreciation ($29,900 ÷ 5 years) $ 5,980 Insurance $ 3,100 Garage rent $ 1,600 Automobile tax and license $ 820 Variable operating cost $ 0.09 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $20,250 at the beginning of last year and incurred the following operating costs: Depreciation ($20,250 ÷ 5 years) $ 4,050 Insurance $ 2,100 Garage rent $ 1,100 Automobile tax and license $ 550 Variable operating cost $ 0.08 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $21,500 at the beginning of last year and incurred the following operating costs: Depreciation ($21,500 ÷ 5 years) $ 4,300 Insurance $ 2,300 Garage rent $ 1,200 Automobile tax and license $ 600 Variable operating cost $ 0.10 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $22,000 at the beginning of last year and incurred the following operating costs: Depreciation ($22,000 = 5 years) Insurance Garage rent Automobile tax and license Variable operating cost $ 4,400 $ 2,300 $ 1,200 $ 600 $ 0.09 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $31,250 at the beginning of last year and incurred the following operating costs: Depreciation ($31,250 ÷ 5 years) $ 6,250 Insurance $ 3,200 Garage rent $ 1,700 Automobile tax and license $ 850 Variable operating cost $ 0.15 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...
Kristen Lu purchased a used automobile for $21,500 at the beginning of last year and incurred the following operating costs: Depreciation ($21,500 ÷ 5 years) $ 4,300 Insurance $ 2,300 Garage rent $ 1,200 Automobile tax and license $ 600 Variable operating cost $ 0.10 per mile The variable operating cost consists of gasoline, oil, tires, maintenance, and repairs. Kristen estimates that, at her current rate of usage, the car will have zero resale value in five years, so the...